Civilians Are Cheaper Than Contractors for Most Defense Jobs, Internal Report Finds

Source: Eric Katz, Government Executive, December 18, 2018

…. Civil service workers are most likely to be less expensive than contractors performing the same work in the Washington, D.C. region and in the Southeastern United States, the report compiled by the Office of the Secretary of Defense found. More than 75 percent of comparisons in the Southeast the Pentagon ran between government and contract workers showed a higher cost for the private sector, and the capital region was not far behind. Government Executive obtained the never-before reported on document through a Freedom of Information Act request. …. In 10 broad job groups the Defense Department studied, contractors came in as the pricier option. That compared to just four in which civilians were more expensive. When divided by Defense component the breakdown was essentially split, though three organizations had 75 percent of comparisons higher for contractor costs and just one saw the reverse. Across the department, comparisons with a significant sample size ranged from a group of contractors costing 316 percent more than their civilian counterparts to a group of civilians costing 154 percent more than similarly functioning contractors. ….